People use realtor, real estate agent and broker as if they were three words for the same job. In Alberta they are not, and the differences are not cosmetic. One of these words is a licence, one is a membership, and one is a specific role inside a brokerage with obligations the other roles do not carry.
Here is what the province actually licenses, and what each word means.
Alberta licenses four classes, and realtor is not one of them
Rule 2(1) of the Real Estate Act Rules sets out the classes of real estate broker for the purposes of the Act, Bylaws and Rules. There are exactly four:
- brokerage
- broker
- associate broker
- associate
That is the complete list. Everyone legally trading in real estate in this province holds one of those four, and the word "realtor" does not appear among them.
This is not a technicality. The licence is the thing that permits someone to trade in real estate, and it is the thing that can be suspended or cancelled if they fail their obligations. Whatever else a person calls themselves sits on top of it.
What each class is
Brokerage (Rule 2(2)). The company. It is licensed as a brokerage and must employ or have associated with it a licensed and registered broker. When you sign a service agreement, you are contracting with the brokerage.
Broker (Rule 2(3)). An individual who holds broker qualifications, is licensed as a broker, and is registered with and approved to operate the brokerage as well as trade on its behalf. Rule 51(1)(a) requires the broker to be actively engaged in the management of the brokerage. Every brokerage has one.
Associate broker (Rule 2(4)). Here is the distinction almost no article explains. An associate broker holds the same qualifications as a broker. What differs is the registration: an associate broker is approved to trade on the brokerage's behalf, not to operate it. It is a person who has done the broker-level training and is working as a licensee rather than running the firm.
Associate (Rule 2(5)). An individual who holds associate qualifications, is licensed as an associate, and is approved to trade on the brokerage's behalf. This is the licence most people mean when they say "real estate agent".
So what is a realtor?
REALTOR is a trademark of the Canadian Real Estate Association. It indicates that a licensee has chosen to join CREA through a board or association and has agreed to be bound by the REALTOR Code of Ethics. It is a membership, and it is voluntary.
Every REALTOR in Alberta also holds one of the four licences above, because the membership does not replace the licence. Somebody can be licensed without being a member. Nobody can be a member instead of being licensed.
CREA is clear about how the two relate. Its own statement of the Code says:
While the Code of Ethics establishes obligations that may be higher than those mandated by law, in any instance where the Code of Ethics and the law conflict, the obligations of the law must take precedence.
That is the accurate hierarchy, from the organisation that owns the trademark. The Code can ask for more than the law does. Where they disagree, the law wins.
We are not going to tell you which to hire. That is not a factual question, and any page that answers it confidently is selling something. What we would say is that the licence is the floor, it applies to everyone, and the duties it carries are substantial. Those duties are the next section.
The distinction that matters more: client or customer
If you take one thing from this page, take this one. It decides what you are owed, and most people get it wrong.
The Rules define both terms at Interpretation (1):
- A client is a person who has entered into a service agreement with a licensee, whether or not that service agreement is in writing.
- A customer is a person who has contacted, but not engaged or employed, a licensee to provide services.
The fiduciary duties, loyalty, confidentiality and full disclosure of conflicts of interest, are owed to clients. If you walk into an open house and chat to the licensee there, you are a customer of that licensee. They are working for the seller. Anything you tell them about your budget or your timeline is not confidential to you.
Read the second half of the client definition too, because it cuts the other way and is just as easy to miss. A service agreement can exist whether or not it is in writing. The absence of a signed document does not automatically mean nobody owes you anything. If you are unsure which you are, ask directly and get the answer in writing.
Two more terms worth recognising
Designated agency is defined as a relationship in which one or more licensees registered with the same brokerage are designated in writing by the brokerage to act as sole agents for a buyer or a seller. Most Alberta brokerages work this way. Rule 58.1 confirms a designated agent owes the same obligations as a licensee in a sole agency relationship, so this model does not reduce what you are owed.
Facilitation services are defined as services by which the interests of the buyer and seller are met "in an even handed, objective and impartial manner without providing confidential advice, advocating on behalf of either the buyer or seller, or using discretion or judgment that benefits the buyer or seller to the prejudice of the other". A licensee providing facilitation is deliberately not on your side. That can be a perfectly sensible arrangement, but you should know when you are in one.
Dual agency is defined as a situation in which a licensee or brokerage represents both seller and buyer in a transaction.
What a licensee owes a client
Rules 57 and 58 set out the obligations. For a buyer's agent, three are worth knowing because buyers rarely realise they are owed them:
- Rule 58(h): to seek out and advise the buyer of available properties that may meet their requirements, including those listed with other brokerages.
- Rule 58(n): to disclose the existence and terms of any competing offers known to the licensee on a property the buyer is interested in.
- Rule 58(i): to take reasonable steps to discover relevant facts about any property the buyer is considering an offer on.
For a seller, Rule 57 requires the brokerage to present all offers and counter-offers in a timely way even when the property is already under contract, to disclose material latent defects known to it, and to advise the seller to get expert advice on matters of importance.
These are owed because of the licence, not because of any membership.
How to check what you are dealing with
- Ask which of the four classes the individual holds, and which brokerage they are registered with.
- Ask whether you are a client or a customer, and get it in writing.
- Check the licence with the Real Estate Council of Alberta, which maintains a public record of licensees.
- If the CREA membership matters to you, ask about it separately. It is a different question from the licence.
This article summarises the Real Estate Act Rules and CREA's published statement of its Code as they stood on the date below. It is general information and not legal advice. For your own situation, read your service agreement and get advice from a lawyer where the terms matter.